North East loan shark ring cracked by police

Dec 24 2009 by Sophie Doughty, The Journal

AN ILLEGAL loan shark ring profiting from families’ poverty has been put out of business.

The money-lending racket operating throughout Tyneside was brought down when officers from the North East Illegal Money Lending team raided the home of an alleged loan shark in Newcastle’s West End, seizing large quantities of cash and log books with customers’ details written inside.

It is believed the operation, which offers customers cash loans but charged huge interest rates up to 150bn%, and used threats of violence to make punters pay-up, was being run from the property on James Street.

Investigators are now sifting through the handwritten records to work out the exact scale of the scam.

Regional enforcement manager Howard Turton said: “It is our belief that we have disrupted a well-organised and highly-profitable loan shark business operating in the West End of Newcastle.

“We know from our experience illegal money lenders will target vulnerable people in their hour of need and charge huge rates of APR, meaning they will often end up paying back several thousands times the amount they initially loaned.

“We are determined to crack down hard on this form of illegal activity, which often has links to other forms of criminality, across the North East of England.

“This operation should act as a warning to loan sharks that we will target them and take action to put them out of business.”

The North East Illegal Money Lending team was set up by the Government to crack down in money-grabbing loan sharks operating across the region.